A Hard Truth about Employee Engagement

A Hard Truth about Employee Engagement 1024 512 Jason Lauritsen

There was a point in my career, probably 18 or 20 years or so ago, that I would have argued vehemently that creating a workplace culture that engages employees was vital to sustaining a profitable business. I believed in my heart that it was an imperative.

At the time, I was an HR leader working at an organization where my CEO really believed (and invested) in the value of people not only as employees but as human beings with lives beyond work.

For me, it was the perfect place to practice HR. While my CEO was pragmatic in how he ran this company of 800+ people, he was always open to considering new ways to help people develop and grow. He came to believe that work was a vehicle for employees to pursue their dreams. And the more we could create an experience of work that supported that, the better we’d do.

And we did well. During my 3 1/2 years working for this organization, we invested heavily in our culture and the development of our people, most of whom worked in call centers. As a result, our turnover began to decrease to nearly half what it had historically been. This along with other efforts, led to us doubling our revenue per employee over those short few years. An astonishing result for a company of this size.

We did so well, in fact, that the company peaked in value and was acquired by a much larger call center company. It was at this point in my career that I was most dogmatic in my belief that the only way to produce sustainable, profitable business results was through an engaged workplace.

But, then I spent the next couple of years working as a VP of HR for the new organization. I took on the support of large legacy call centers where turnover was in the range of 200% annually. Given my mindset at the time, I climbed up on my righteous high horse and started working on how to create a more engaging work environment in these call centers.

And I met resistance at every turn by the local management. Sure, they were interested in decreasing turnover as long as it didn’t require any real change. In reality, they mainly wanted to ensure that my team could keep up with recruiting enough new hires to backfill for the turnover.

I fought this battle for a year and made very little progress. I wanted to talk about culture and engagement, they just wanted to talk about recruiting. Eventually, it hit me.

This company who I now worked for had been in business for several decades. And they had been quite successful by most financial measures. They were 40,000 employees strong at the time.

And, near as I could tell, they did it all without caring at all about employee engagement.

Their business model assumed high employee turnover. So, when they priced business, they built in the cost of supporting 200% annual turnover.  Managers, rather than learning how to engage and develop employees, learned how to churn and burn people the best they could to maintain their minimum performance standards. And, they had gotten good enough at it to keep their customers satisfied.

It was black and white evidence that my belief in employee engagement as the only way to succeed was wrong. You can make money a lot of different ways in business–many of those ways involve exploiting, undervaluing, or otherwise taking advantage of people (employees, customers, etc.).

This was the hard truth I learned.  Employee engagement isn’t an imperative of succeeding in business. You can survive and succeed without caring at all about employees as people. I’ve lived through it (as I’m sure many of you have too).

Knowing this is important when you are trying to convince executives to invest in employee engagement. They know this isn’t a succeed or fail discussion because they’ve spent most of their careers working for successful companies who would sacrifice people for short term financial rewards without hesitating.

Investing in culture and engagement isn’t the ONLY path, but it’s the RIGHT path. Treating people well at work, caring about them as humans, making sure they feel included and appreciated–all of the things we typically roll together under the heading of “employee engagement,” is first and foremost simply the right thing to do.

There’s very little debate in any organization that treating customers with care, respect, appreciation, and intention is critical to succeeding. And yet, some still question the importance of doing the same for our employees.

The work we chose to do to create more human, engaging work experiences isn’t only about better business results, it’s about achieving them in a way that fulfills everyone involved–employees, customers, shareholders, communities. It’s also about creating the opportunity for each person to find their potential both at work and in life.

There are certainly other paths to business results. Some of them may even be easier to travel as business leaders.

Employee engagement isn’t simply about doing what works. It’s also about doing what’s right.

“The time is always right to do what is right.”

Martin Luther King, Jr.

 

1 comment
  • LIsa Mungovan

    HI Jason, I heard you speak at the IN HR SHRM conference and agree with you completely. The Leadership Team of a company that I worked for from 1996-2008 changed its culture to one of an engaged workforce in 2001. We were acquired in 2005 because we were profitable and the family-owned business decided our product line no longer aligned with their strategy. The company that bought us was a Swiss/French company and their leadership believed they were the only ones that could solve problems, create new ideas, etc.

    I was asked to stay on by the US President to teach their management teams and employees of their US Operations the Visionary Leadership model we taught at my former employer. My new boss, the HR Director, sabotaged the entire effort and the Corporate offices in Zurich didn’t understand it. So we went from a “Good To Great” example to just a good organization. My job was eliminated in 2008, and as I looked back, I stayed 2 1/2 years longer than I should have. Many of our former leaders went on to work at various companies and some were successful with implementing Visionary Leadership at their new employers but the new culture was definitely not one of engagement.

    I own my own business now and work primarily with small businesses. I find that if I can help the owners understand the importance of engagement, it will help limit turnover, increase training and job satisfaction.

    Do you have any samples of performance goal setting that you’ve used in the past that you’re willing to share? 2 of my clients are transitioning away from a review of the past year and focusing more on goals and how to make things happen in the future,

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